Brazil’s National Petroleum Agency, Natural Gas and Biofuels (ANP) on Wednesday held the public bidding session of the 3rd Cycle of the Open Acreage in the Concession Model. In the auction, 59 exploration blocks were acquired in 6 basins, generating R$ 422.4 million in signature bonus – a premium of 854.84 per cent – and will result in at least R$ 406.3 million in investments in the first phase of the contract alone (exploration phase).

The blocks were acquired by a total of 13 companies, one of which is a new entrant in Brazil (CE Engenharia).

European major Shell, in partnership with Ecopetrol Oil and Gas, closed blocks S-M-1599, S-M-1601, S-M-1713, S-M-1817, S-M-1908 and S-M-1910, all in the Santos Basin. Shell Brasil will operate the blocks with a 70 per cent interest and pay a total of R$ 98.158 million in subscription bonuses.

“The third Permanent Offer auction was another milestone in our focus in Brazil, which accounts for about 13% of Shell’s global oil and gas production. This new area further expands our portfolio in Brazil, where we have been acting as operators since the beginning of the 21st century,” said Manoela Lopes, Director of Exploration at Shell Brasil.

With the block acquired in the 3rd Permanent Offer of exploration areas, Shell Brazil now holds more than 30 oil and gas contracts in the country.

On the other hand, TotalEnergies secured a 100 per cent interest in each of the two exploration blocks, S-M-1711 and S-M-1815, with signature bonuses of R$ 150 million and R$ 125 million, respectively.

ANP’s Director General, Rodolfo Saboia, said the results of the bidding round exceeded the best expectations.